978-0073524597 Chapter 8 Part 3

Chapter 08 – Structuring Organizations for Today’s Challenges

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Restructuring

(See complete PowerPoint slide notes on page 8.64.)

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Traditional and Inverted

Organizations

TEXT FIGURE 8.9

Comparison of an Inverted

Organizational Structure and a

Traditional Organizational Structure

(Text page 224)

(See complete PowerPoint slide notes on page 8.65.)

2. ORGANIZATIONAL (OR CORPORATE) CUL-

TURE is the widely shared values within an or-

ganization that provide unity and cooperation to

1. All organizations have two systems.

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Organizational Culture

(See complete PowerPoint slide notes on page 8.65.)

lecture link 8-10

EMPLOYER ICEBREAKING

RITUALS

Each organizational culture is different. Foot Levelers has

its own practices. (See the complete lecture link on page 8.49

of this manual.)

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Formal Organization

(See complete PowerPoint slide notes on page 8.65.)

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Informal Organization

(See complete PowerPoint slide notes on page 8.66.)

Chapter 08 – Structuring Organizations for Today’s Challenges

2. No organization can operate effectively without

BOTH TYPES of organization.

a. The FORMAL ORGANIZATION can be slow

3. It is wise to learn quickly who the important peo-

VIII. SUMMARY

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Limitations of Informal

Organizations

(See complete PowerPoint slide notes on page 8.66.)

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Group Norms

(See complete PowerPoint slide notes on page 8.66.)

lecture link 8-11

MAPPING THE INFORMAL

ORGANIZATION

The best way to manage informal organizations is to

acknowledge their existence and then bring them out into the

open. (See the complete lecture link on page 8.74 of this man-

ual.)

bonus case 8-4

OFFICE ALUMNI

Many businesses have set up social networking sites for

their “alumni” as the recession takes its toll on American jobs.

(See the complete lecture link on page 8.85 of this manual.)

progress

assessment

(Text page 226)

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Progress Assessment

(See complete PowerPoint slide notes on page 8.64.)

Chapter 08 – Structuring Organizations for Today’s Challenges

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PowerPoint slide notes

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Chapter Title

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Learning Goals

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Ursula Burns

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Name That Company

Company: K2 Skis

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Reorganization Is for Everyone

Changing economic times require businesses to alter

their approach via reorganization. Using organizational

principles is an important aspect to this reorganization.

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Structuring an Organization

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Safety vs. Profit

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The Changing Organization

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How Much Changes in a Decade?

1. This slide shows just how much our country has

changed since 2000.

2. Clearly the digital revolution is shown here with

the amount of blogs, cell usage, e-mails sent, and

so on. Ask the students, Do you expect these num-

bers to continue to grow? What may this table look

like in 2020?

3. The number of daily newspapers and letters sent

have dropped. Ask the students, Do you think we

will lose more daily newspapers? What about let-

ters? How many still receive letters/cards from

grandparents opposed to e-mails or Facebook

posts?

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Weber’s Principles

Weber, a German sociologist and economist, wrote The

Theory of Social and Economic Organizations. Weber’s

principles were similar to Fayol’s. He emphasized job de-

scriptions, written rules, consistent policies, regulations,

and procedures, and staffing and promotions based on qual-

ifications. Weber was in favor of bureaucracy and believed

that these principles were necessary for large organizations’

effective functioning. However, in today’s corporate world,

these rules and bureaucracy do not necessarily work. Or-

ganizations need to respond to customers and other envi-

ronmental factors quickly which calls for a creative, flexi-

ble, and a quick decision-making process contrary to a bu-

reaucratic process.

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Hierarchies and Command

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Typical Organization Chart

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Bureaucratic Organizations

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Progress Assessment

1. Division of labor is dividing tasks among workers

to complete a job. Job specialization is dividing

tasks into smaller jobs.

2. Fayol’s principles of management are:

• Unity of command

• Hierarchy of authority

• Division of labor

• Subordination of individual interests to the

general interest

• Authority

• Degree of centralization

• Clear communication channels

• Order

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Centralization or Decentralization?

Centralization can be defined as an organizational struc-

ture that focuses on retaining control of authority with

higher-level managers. One of the disadvantages of this

type of management style is slower decisions because of

layers of management. Ask the students, What specific

problems do you see with this type of management? (Slow-

er decision making means the company is less responsive to

both internal and external customer needs.) Share with the

students a simple rule to follow when dealing with central-

ized authority: Decisions regarding overall company policy

and establishment of goals and strategies should be made at

the top.

Decentralization is an organizational structure that fo-

cuses on delegating authority throughout the organization to

middle and lower-level managers. The most significant ad-

vantage of this form of management style is the empower-

ment of the employees. Statistics indicate when delegation

is practiced in a company, absenteeism, injuries, loyalty,

and production improve. Share with the students a simple

rule to follow when dealing with decentralized authority:

The closer an employee interacts with the customer, the

more decentralized the decision making should be. For ex-

ample, a customer service manager must have the authority

to make a decision that will satisfy a customer immediately,

not wait until the home office makes a decision.

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Span of Control

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Organizational Structures

Many organizations have moved from tall organizations

to flat organizations in an effort to increase nimbleness in

the marketplace.

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Flat Organizational Structure

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Departmentalization

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Four Ways to Structure an

Organization

Traditional business models, such as line organizations

and line-and-staff organizations, are giving way to new

structures.

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Line Organizations

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Line Personnel

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Staff Personnel

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Sample Line-and-Staff Organization

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Matrix Organizations

The creation of matrix organizations was in response to

the inflexibility of other more traditional organizational

structures. This structure brings specialists from different

parts of the organization to work together temporarily on

specific projects.

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Sample Matrix Organization

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Advantages of the Matrix Style

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Disadvantages of the Matrix Style

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Cross-Functional Self-Managed

Teams

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Going Beyond Organizational

Boundaries

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Building Successful Teams

1. This slide presents five important conditions for

garnering the maximum benefits of small teams,

according to Jon Katzenbach, coauthor of The Wis-

dom of Teams.

2. Ask the students, Which of these five conditions do

you believe would be most important in your team

experience? Why? (The most critical factor of these

five conditions, according to Katzenbach, is a clear

performance purpose for the team.)

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Progress Assessment

1. Line personnel are responsible for directly achiev-

ing organizational goals. Line personnel include

production workers, distribution people, and mar-

keting personnel. Staff personnel advise and assist

line personnel in meeting their goals.

2. The flexibility inherent in the matrix-style organiza-

tion directly challenge the rigid line and line-and-

staff organization structures.

3. The main difference between matrix-style organiza-

tion and cross-functional teams is that cross-

functional teams tend to be long-lived as compared

to the temporary and fluid nature of teams in a ma-

trix-style organization.

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Real-Time Business

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Transparency and Virtual Corporations